12BA25 MANAGEMENT INFORMATION SYSTEM Unit- I

Data, Information, Knowledge and Intelligence :

Datum is singular, data is plural (book says data item and data items)

Information is data structured and organized to be useful in making a decision or performing some task

Knowledge implies understanding of information o Example from book: company analyzes its recruiting data and concludes that recruits from school X tend to have good outcomes only if their GPAs are at least 3.0. In future, based on this knowledge, they screen applicants from school X by their GPAs, only interviewing those with at least a 3.0 GPA. o One common kind of knowledge representation in computers is called artificial intelligence (AI). It got a lot of hype in the 1980s, and then went somewhat out of fashion, but it is still growing gradually. We will not discuss it much, and stick to information instead. From "Mainstream Science on Intelligence" (1994), an editorial statement by fifty-two researchers: A very general mental capability that, among other things, involves the ability to reason, plan, solve problems, think abstractly, comprehend complex ideas, learn quickly and learn from experience. It is not merely book learning, a narrow academic skill, or testtaking smarts. Rather, it reflects a broader and deeper capability for comprehending our surroundings"catching on," "making sense" of things, or "figuring out" what to do

Information Technology Hardware physical tools: computer and network hardware, but also low-tech things like pens and paper

Software (changeable) instructions for the hardware People Procedures instructions for the people Data/databases Hardware Resources

The concept of Hardware resources includes all physical devices and materials used in information processing. Specially, it includes not only machines, such as computers and other equipment, but also all data media, that is, all tangible objects on which data is recorded, from sheets of paper to magnetic disks. Example of hardware in computer-based information systems are: Computer systems, which consist of central processing units containing microprocessors, and variety of interconnected peripheral devices. Examples are microcomputer systems, midrange computer systems, and large mainframe computer systems. Computer peripherals, which are devices such as a keyboard or electronic mouse for input of data and commands, a video screen or printer for output of information, and magnetic or optical disks for storage of data resources. Software resources The concept of Software Resources includes all sets of information processing instructions. This generic concept of software includes not only the sets of operating instructions called programs, which direct and control computer hardware, but also the sets of information processing instructions needed by people, called procedures. It is important to understand that even information systems that dont use computers have a software resource component. This is true even for the information systems of ancient times, or the manual and machine-supported information systems still used in the world today. They all require software resources in the form of information processing instructions and procedures in order to properly capture, process, and disseminate information to their users. The following are the examples of software resources: System Software, such as an operating system program, which con controls and supports the operations of a computer system.

 Application Software, which are programs that direct processing for a particular use of computers by end users. Examples are a sales analysis program, a payroll program, and a work processing program. Procedures : which are operating instructions for the people who will use an information system. Examples are instructions for filling out a paper form or using a software package. PEOPLE RESOURCES People are required for the operation of all information systems. These people resources include end users and IS specialists End users (also called users or clients) are people who use an information system or the information it produces. They can be accountants, salespersons, engineers, clerks, customers, or managers. Most of us are information system end users. IS Specialists are people who develop and operate information systems. They include systems analysts, programmers, computer operators, and other managerial technical, and clerical IS personnel. Briefly, systems analysts design information systems based on the information requirements of end users, programmers prepare computer programs based on the specifications of systems analysts, and computer operators operate large computer systems. Data Resource Data is more than the raw material of information systems. The concept of data resources has been broadened by managers and information systems professionals. They realize that data constitutes a valuable organization resource. Thus, you should view data as data resources that must be managed effectively to benefit all end users in an organization. Data can take many forms, including traditional alphanumeric data, composed of numbers and alphabetical and other characters that describe business transactions and other events and entities. Text data, consisting of sentences and paragraphs used in written communications; image data, such as graphic shapes and figures; and audio data, the human voice

and other sounds, are also important forms of data. The data resources of information systems are typically organized into: Database that hold processed and organized data. Knowledge bases that hold knowledge in variety of forms such as facts, rules, and case examples about successful business practices. For example, data about sales transactions may be accumulated and stored in a sales database for subsequent processing that yields daily, weekly, and monthly sales analysis reports for management. Knowledge bases are used by knowledge management systems and expert systems to share knowledge and give expert advice on specific subjects. Information System Evolution and its Types Conceptually, information systems in the real world can be classified in several different ways. For example, several types of information systems can be classified conceptually as either operations or management information systems. (i) OPERATIONS SUPPORT SYSTEMS Information systems have always been needed to process data generated by, and used in, business operations. Such operations support systems produce a variety of information products for internal and external use. However, they do not emphasize producing the specific information products that can best be sued by managers. Further processing by management information systems is usually required. The role of a business firms operations support systems is to efficiently process business transactions, control industrial processes, support enterprise communications and collaboration, and update corporate databases. (ii) TRANSACTION PROCESSING SYSTEMS Operations support systems include the major category of transaction processing systems (TPS). Transaction processing systems record and process data resulting fro business transactions. Typically examples are information systems that process sales, purchases, and inventory changes. The results of such processing are sued to update customer, inventory, and other organizational databases. These databases then provide the data resources that can be processed and used by management information systems, decision support systems, and executive information systems.

Transaction processing systems process transactions in two basic ways. In batch processing, transactions data is accumulated over a period of time and processed periodically. In real-time (or online) processing, data is processed immediately after a transaction occurs. For example, point of sale (POS) systems at retail stores may use electronic cash register terminals to capture and transmit sales data over telecommunication links to regional computer centers for immediate (real-time) or nightly (batch) processing. (iii) PROCESS CONTROL SYSTEMS Operation support systems also make routine decisions that control operational processes. Examples are automatic inventory reorder decisions and production control decisions. This includes a category of information systems called process control systems, in which decisions adjusting a physical production process are automatically made by computers. For example, a petroleum refiner uses electronic sensors linked to computers to continually monitor chemical processes. The computers monitor a chemical process, capture and process data detected by sensors, and make instant (real-time) adjustments to appropriate refinery processes. (iv) ENTERPRISE COLLABORATION SYSTEMS Enterprise collaboration systems are information systems that use a variety of information technologies to help people work together. Enterprise collaboration systems help us collaborate to communicate ides, share resources, and coordinate our cooperative work efforts as members of the many formal and informal process and project teams and other workgroups that are a vital part of todays organizations. Thus, the goal of enterprise collaboration systems is to use information technology to enhance the productivity and creativity of teams and workgroups in the modern business enterprise. (v) MANAGEMENT SUPPORT SYSTEMS When information systems focus on providing information and support for effective decision making by managers, they are called management support systems. MANAGEMENT INFORMATION SYSTEMS Management information systems (MIS) are the most common form of management support systems. They provide managerial end users with information products that support much of their

day-to-day decision-making needs. Management information systems provide a variety of reports and displays to management. The contents of these information products are specified in advance by managers so that they contain information that managers need. Management information systems retrieve information about internal operations from database that have been updated by transaction processing systems. They also obtain data about the business environment from external source. Information products provided to managers include displays and reports that can be furnished (1) on demand, (2) periodically, according to a predetermined schedule. (i) DECISION SUPPORT SYSTEMS Decision support systems (DSS) are a natural progression from information reporting systems and transaction processing systems. Decision support systems are interactive, computer-based information systems that use decision models and specialized database to assist the decision making process of managerial end users. (ii) EXECUTIVE INFORMATION SYSTEMS Executive information systems (EIS) are management information systems tailored to the strategic information needs of top management. Top executives get the information they need from many sources, including letters, memos, periodicals, and reports produced manually as well as by computer systems. Other sources of executive information are meetings, telephone calls, and social activities. Thus, much of atop executives information comes from non-computer services. Computer generated information not played a primary role in meeting many top executives information needs. OTHER CLASSIFICATIONS OF INFORMATION SYSTEMS (i) EXPERT SYSTEMS An expert system is a knowledge-based information systems; that is, it uses its knowledge about a specific area to act as an expert consultant to users. The components of an expert system are a knowledge base and software modules that perform inferences on the knowledge and offer answers to a users questions. Expert systems are being used in many different fields,

including medicine, engineering, the physical sciences, and business. For example, expert systems now help diagnose illnesses, search for minerals, analyze compounds, recommend repairs, and do financial planning. Expert systems can support either operations or management activities. KNOWLEDGE MANAGEMENT SYSTEMS Knowledge Management systems (KMS), Workers create, organize, and share important business knowledge wherever and whenever it is needed. For example, many knowledge management systems rely on Internet and intranet Web sites, knowledge bases, and discussion forums as key technologies for gathering, storing, and disseminating business knowledge. In this way, knowledge management systems facilitate organization learning and knowledge creation and dissemination within the business enterprise. (iii) STRATEGIC INFORMATION SYSTEMS The strategic role of information systems involves using information technology to develop products, services, and capabilities that give a company strategic advantages over the competitive forces it faces in the global marketplace. This creates strategic information system, information systems that support or shape the competitive position and strategies of an enterprise. So a strategic information system can be any kind of information systems (TPS, MIS, DSS, etc.) that helps an organization gain a competitive advantage, reduce a competitive disadvantage, or meet other strategic enterprise objectives. (iv) BUSINESS INFORMATION SYSTEMS As a future managerial end user, it is important for you to realize that information systems directly support both operations and management activities in the business functions of accounting, finance, human resource management, marketing, and operations management. Such business information systems are needed by all business functions. For example, marketing managers need information about sales performance and trends provided by marketing information systems. Financial managers need information concerning financing costs and investment returns provided by financial information systems. (v) INTEGRATED INFORMATION SYSTEM

It is also important to realize that information systems in the real world are typically integrated combinations of several types of information systems we have just mentioned. Thats because conceptual classification of information systems are designed to emphasize the many different roles of information systems. In practice, these roles are integrated into composite or crossfunctional information systems that provide a variety of functions. Thus, most information systems are designed to produce information and support decision making for various levels of management and business functions, as well as do record keeping and transaction processing systems.

Information System Types based on function

Departmental information systems, or functional area information systems are designed to be operated within a single traditional functional department of an organization such as sales, human resources, or accounting. In the early days of CBIS, these were often the only kind of systems that were practical ERP (Enterprise Resource Planning) systems are a relatively extreme reaction to the problem of poorly integrated functional area systems, offered by vendors such as SAP, Oracle, and PeopleSoft. They aim to support the entire organizations needs with essentially a single integrated system. They have enormous potential benefits, but are also notoriously tricky and expensive to configure and install. Transaction Processing Systems (TPS) gather data about everyday business events in real time as they occur. Examples: o You buy 3 items at a local store o A shipment of coffee beans arrives at a local distribution center o A package is unloaded from a FedEx or UPS aircraft All of these events are examples of transactions that may be immediately tracked by a TPS. Often, technology like barcodes and scanners makes tracking such transactions quicker, cheaper, and more detailed than it would otherwise be. Some other common terms we will define in more detail later in the course:

o MIS Management Information System o DSS Decision Support Systems o ES Expert Systems o EIS Executive Information Systems An Interorganizational System (IOS) connects two organizations for example, it may allow a company to automatically share inventory and backlog data with suppliers or customers. Electronic Commerce or E-Commerce refers to sales transactions in which at least one side of the transaction (buyer or seller), and perhaps both, is performed by a CBIS without direct human help.

System Analyst Role and function

The function of a system analyst varies from industry to industry but the concept of the role does not change. A system analyst analyses systems both before and after any changes may occur with them. A system analyst is used by a company for many different reasons. Some of these will be on a regular basis to check that the systems that are running are at the scale and speed that they should be and other uses of a system analyst will be when there is a system change over or a new system is implemented. Some of these systems in big companies can include:

Ordering systems Payroll systems Reporting systems

The system analyst will be on board with the system changes before these are due to be done. It is their responsibility to ensure that the system will not cause and problems and also look into the solutions of any problems that they foresee happening when the

system is implemented. These could be problems with the different kinds of data that is input and the compatibility of different programs or any usability issues that may occur once the system is in place.

The system analyst will also make sure that the system is ready to go live and perform any testing to the system in a development area before the system is ready to use. A system analyst is required to make sure that any system changeover is completed as smoothly as possible.